The XRP price outperformed Bitcoin and Ethereum in March as investors kept the impending summary judgment on the lawsuit against the US Securities and Exchange Commission (SEC) in mind.
XRP price soared 65% from its March low of $0.3372 to new 2023 highs of $0.5847 before retreating to test support at $0.5. This week, support near $0.5 has been critical, as XRP hit $0.484 before rebounding its present position.
Source: CoinMarketCap
The market cap of XRP has increased by 0.58% in 24 hours to $26.3 billion, surpassing Cardano’s $13.4 billion. ADA performs reasonably well, rising 1.27% to $0.38.
Conversely, XRP has seen more than $700 million in trade activity in the same 24-hour period, but its price has remained relatively stable at $0.51. Most experts feel XRP balances on the edge of a high precipice, with two possible outcomes. On the plus side, XRP may restart its ascent, aided by potential bullish momentum ahead of the SEC’s ultimate verdict on the case on or around May 6.
XRP/USD 1-Day chart | Source: TradingView
If support at $0.5 fails to hold and the XRP price falls below $0.48, investors may begin to prepare for a probable trend reversal. This suggests that short bets with objectives of $0.45, $0.4, and $0.4 could quickly turn profitable.
On the other hand, falls could liquidate the majority of long positions established in anticipation of Ripple winning the case. If bulls let go of the support level between $0.48 and $0.5, the sell signal would be disastrous for the XRP price. But, assuming this support is maintained, the technical prognosis for XRP will continue to improve near $1.
According to the positions of all the moving averages, the possibility of the XRP price returning to $1 is higher. AZCoin News reported that a golden cross pattern occurs when a short-term moving average crosses over a long-term moving average. For instance, when the 50-day EMA crosses above the 200-day EMA. Traders view the pattern as bullish, which suggests the likelihood of a pullback to $0.4 or $0.35 has decreased dramatically.
The performance of XRP in 2023 will be determined by the outcome of the Ripple vs. SEC court case, which is scheduled to be decided on or about May 6. Investors believe Ripple will win the case as the most important driver of the XRP price in 2023.
As we get closer to the decision, additional twists appear to form. On April 7, attorney Bill Morgan took to Twitter to disclose that, according to the SEC’s expert, the swings in XRP’s value since mid-2018 have been heavily influenced by Bitcoin and Ethereum values, accounting for up to 90% of the differences.
The SEC intends to support this assertion by presenting proof that Ripple’s price announcements influence the value of XRP. Furthermore, the SEC could argue that Ripple owns a large amount of XRP, rendering the cryptocurrency centralized and so security.
XRP has a long way to go before it can challenge Bitcoin’s dominating position in the market.
Read more:
- XRP Price Is Bullish, And All Its Key Metrics Must Be Maintained To Sustain Its Growth
- Here’re The Reasons Why EC V. Ripple Case May End By May 6